The private equity (PE) investors in India witnessed a new trend this year as the hiring in the industry hit a new high with several senior executives quitting to start their own funds. About half-a-dozen senior fund managers moved out to start their own funds, ranging from hybrid to debt to mezzanine financing, while a similar number quit to launch their own Internet startups.
Experts from executive search firms confirmed that 2016 has been momentous for PE hiring as there was a healthy demand for talent across levels. In fact, the Indian PE industry hired around 130 people across levels this year—15 per cent more than the previous year— with the churn rate much higher at the senior levels.
The hiring saw an upward trend, despite a fall in PE investments. Apparently, this year there have been 51 senior-level PE hires versus 28 last year and 19 in 2014. At the middle-management level, there were 22 hires versus 18 in 2015 and 15 in 2014. Themes, such as special situations, distress funds and venture funds have reportedly been more active in hiring than traditional growth and buyout funds this year. Experts believe the trend will continue next year.
With newer technologies coming in, companies are adopting them and gaining an easy access to the market. This is resulting in increased growth opportunities and springing of new funds, further causing a hiring spree.